Reconstruction and Economic Development Services Aid Iraqi Factories
Client: Department of Defense (U.S.)
Challenge: Revitalize industry in Iraq; provide jobs and resources; and breathe new life into the economy.
Solution: Evaluate the state of Iraqi factories, determine which companies needed help, identify those with significant potential for jobs and marketable products, and determine what investments needed to be made.
Results: The work performed under CSC's Reconstruction and Economic Development Serivces resulted in a number of successes including a $3.4 million investment to build dairy operations in Abu Ghraib and getting a refinery up and running so that Iraqis could, once again, return to meaningful work and life. As of August 2008, CSC was working on over 50 individual projects in approximately 35 enterprises.
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Revitalize industry; provide jobs and resources; breathe new life into an economy — significant challenges made more formidable by the location: Iraq.
In January 2007, CSC began supporting the U.S. Department of Defense’s (DoD) Task Force to Improve Business and Stability Operations in Iraq (TFBSO) when the task force sought manufacturing expertise for an industrial revitalization effort. The industrial revitalization effort is part of the TFBSO mission to reinvigorate the Iraqi economy and reduce unemployment, cornerstone elements of modern counter-insurgency doctrine that helps to decrease violence and improve security for U.S. servicemen and women.
Years of neglect had rendered Iraqi facilities inoperable, and employee morale was low. To help stabilize the country and restore normalcy to its citizenry, CSC mobilized a team of specialists in IT program management, supply chain management, manufacturing engineering and business development.
Business Practices and Flak Jackets
A Reconstruction and Economic Development (RED) Services team from CSC evaluated the state of Iraqi factories, determined which companies most urgently needed help, identified those with significant potential for jobs and marketable products, and determined what investments needed to be made.
The companies evaluated were in a range of industries from agricultural — such as dairy, fertilizer and slaughterhouse operations — to refineries, textiles and leather tanning for garments, boots and purses. Future industries tapped for improvement include oil, construction, education and health care.
CSC employees, many with no prior military experience, knew the work would be challenging and were not surprised when they first arrived, to find flak jackets and helmets were the attire of the day.
Back to Basics
What the team did not expect was the absence of the most basic processes of successful Western businesses such as strategic planning, sales forecasting, actual sales and marketing, and distribution. As a result, the team focused on restoring basic infrastructure and bringing the workers, equipment and communications up to standard operating levels.
To keep military officials -- including the commanding general of Multi-National Force-Iraq -- apprised of the status of operations, CSC regularly provided progress updates on machines and materials, outlook for employment and product readiness as well as the status of establishing trade relationships.
Bringing Communities Back to Life
Although the mission of the industrial revitalization effort has remained virtually the same since early 2007, the conditions and working environment matured as revitalization progressed, and there have been successes. For example, in the town of Abu Ghraib the CSC team finalized a $3.4 million investment to build dairy operations.
In Doura, the team found the streets deserted and all shops closed. The only way in or out was with military escort. Five months after getting the main refinery plant up and running, people returned to work, local shops reopened and the community began to live again.
In August 2008, CSC teams began holding business development workshops to help the reviving businesses become sustainable. The teams teach Iraqi business owners to understand the market and products, including pricing, marketing and the competition.
CSCers on the DoD task force teams work hand in hand with the U.S. Department of State’s Provincial Reconstruction Teams. When the summer of 2008 ended, CSC was working on over 50 individual projects in approximately 35 enterprises, with teams based in remote areas.
Bill Duncan, the first head of CSC’s Factory Assessment/Restart Team, observed, “Never before had CSC been involved in transforming the economy of a war-torn nation, but our experience with manufacturing processes in stable economies has enabled us to contribute in very important ways.”